State Procurement - Construction and Services - Contract Modification
HB 1499 requires state procurement contracts for construction and services to include specific clauses enabling contract modifications when costs rise due to statutory changes increasing required compensation/benefits or collective bargaining agreements. It directly affects state agencies and contractors by mandating these clauses in all new construction and services contracts signed after October 1, 2025. The bill adds two key provisions: (1) automatic adjustment for site condition differences in construction contracts, and (2) standardized procedures for handling contract claims. It modifies Maryland’s existing procurement law (Section 13-218(b)) to enforce these cost-adjustment mechanisms without creating new programs or funding.
Bill status
passed
3 of 5 stages cleared
Introduction
Feb 2025
Committee Review
Mar 2025
House of Delegates Passage
Mar 2025
Senate Passage
Governor
Introduced Feb 13, 2025
Last action Mar 20, 2025
Maddy AI version diff · 1 comparison
What changed between versions
First - State Procurement - Construction and Services - Contract Modification
→
Third - State Procurement - Construction and Services - Contract Modification
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4 edits
MODERATE
HB 1499 was amended to expand its applicability from general construction contracts to specifically include security services contracts, add duration and value thresholds for contract modification clauses, and update the effective date. These changes clarify when the new compensation and benefits adjustment requirements apply to state procurement contracts.
Scope change
The bill now specifically targets security services contracts in addition to construction contracts, and adds duration (3+ years) and value (> $1,000,000) thresholds for when contract modification clauses are required.
SCOPE
Changed 'construction' to 'construction or security services' to expand the types of contracts covered by the compensation adjustment requirements.
ELIGIBILITY
Added requirements that contracts must be 3 years or more in duration and valued at greater than $1,000,000 to trigger the contract modification clause for compensation and benefits.
REQUIREMENT
Added a new provision requiring that contracts modified under the compensation adjustment clause must be contingent on approval by the Board of Public Works.
TIMELINE
Changed the effective date from October 1, 2025 to October 1, 2026.
Floor votes · House of Delegates Mar 8, 2025
How they voted
131–5
Passed · 3 other
Total votes 139
Mar 8, 2025
D
Democratic100
98% Yea
R
Republican39
84% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
13
Key actions
4
Committee
5
Mar 17, 2025
Committee
Referred Budget and Taxation
upper
Mar 17, 2025
Lower · Passed
Third Reading Passed
lower
Mar 15, 2025
Lower · Passed
Favorable with Amendments {
lower
Mar 15, 2025
Lower · Passed
Favorable with Amendments Report by Health and Government Operations
lower
Mar 8, 2025
House Of Delegates · Passed
House of Delegates Vote: pass (131-5-3)
house of delegates
Mar 3, 2025
Committee
Rereferred to Health and Government Operations
lower
Feb 13, 2025
Committee
First Reading House Rules and Executive Nominations
lower
23 primary · 0 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Anne Kaiser
DDemocratic
P
Bonnie Cullison
DDemocratic
P
Brian Chisholm
RRepublican
P
Deni Taveras
DDemocratic
P
Harry Bhandari
DDemocratic
P
Heather Bagnall Tudball
DDemocratic
P
Jamila Woods
DDemocratic
P
Jennifer White Holland
DDemocratic
P
JP
Joseline Peña-Melnyk
DDemocratic
P
Kathy Szeliga
RRepublican
P
Ken Kerr
DDemocratic
P
Kim Ross
DDemocratic
P
Lesley Lopez
DDemocratic
P
Matt Morgan
RRepublican
P
Nic Kipke
RRepublican
P
Pam Guzzone
DDemocratic
P
Sandy Rosenberg
DDemocratic
P
Steve Johnson
DDemocratic
P
Teresa Reilly
RRepublican
P
Teresa Woorman
DDemocratic
P
Terri Hill
DDemocratic
P
Tiffany Alston
DDemocratic
P
Tom Hutchinson
RRepublican
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